Zeekr Group's Q1 2025 Results: Margin Mastery and Premium Momentum Signal a Buying Opportunity

Zeekr Group’s Q1 2025 financial results reveal a company executing its strategy with precision, combining margin discipline, premium product launches, and cross-brand synergies to carve out a leadership position in the global premium new energy vehicle (NEV) sector. With vehicle margins hitting 16.5% and gross margins at 19.1%, alongside the rollout of high-profile models like the Zeekr 7GT and Lynk & Co 900, this is a story of operational resilience and strategic growth. For investors focused on quality growth and margin resilience, Zeekr now presents a compelling risk-reward proposition.

Margin Improvements: Proof of Cost Discipline and Premium Pricing Power

Zeekr’s margin expansion is the clearest sign of its operational maturity. The 16.5% vehicle margin, up from 13.1% in Q1 2024 and 14.3% in Q4 2024, reflects disciplined cost management, shared platform efficiencies, and a shift toward higher-margin premium models. The Zeekr brand alone achieved a 21.2% margin, a historic high, driven by flagship models like the Zeekr 7GT (with its 2.95-second acceleration) and the upcoming Zeekr 9X hybrid SUV, which commands a premium price tag.

Meanwhile, Lynk & Co’s margin rose to 11.4%, a solid improvement from 9.3% in Q4 2024, despite macroeconomic headwinds. This balance between premium and mass-market segments underscores Zeekr’s ability to leverage brand differentiation.

The widening margin gap versus peers like NIO (NIO) or Xpeng (XPEV) highlights Zeekr’s superior cost control.

New Model Pipeline: Unlocking High-Margin Revenue Streams

Zeekr’s 2025 product offensive is its most potent growth lever. The Zeekr 7GT (launched in April) and Lynk & Co 900 (delivered in April) are already generating momentum, with the latter securing 40,000 pre-orders within months. The Zeekr 9X, set for a Q3 2025 launch, promises to redefine the hybrid SUV segment with its 380 km all-electric range and L3 autonomous driving capabilities, targeting affluent buyers who prioritize both sustainability and performance.

These models are engineered to exploit underserved niches: the Zeekr 7GT as a halo performance EV, the Zeekr 9X as a luxury hybrid pioneer, and the Lynk & Co 900 as a family-focused tech SUV. Together, they create a $100k+ price-point footprint, far above the $40k-$60k mass-market segment, where gross margins are typically 2-3x higher.

Synergies from Zeekr-Lynk Integration: Scaling Profitability

The merger of Zeekr and Lynk & Co has unlocked $1.2 billion in platform and R&D synergies, reducing operational losses by 25.7% YoY to RMB1.26 billion. Shared technologies like NVIDIA’s DRIVE AGX Thor chip (used in both brands’ flagship models) and SPA Evo platform allow cost-sharing while maintaining brand identity.

This synergy-driven efficiency is a blueprint for scaling profitability, enabling Zeekr to invest in R&D (e.g., its V4 Ultra-Fast Charging infrastructure) without sacrificing margins.

Risks vs. Long-Term Catalysts: Why the Bulls Will Win

Near-Term Risks:
- Seasonal delivery dips: Q1 2025 deliveries fell 38.4% QoQ due to post-holiday lulls, but April’s rebound (+1.5% MoM) signals stabilization.
- ASP pressures: Average selling prices dropped slightly due to product mix shifts, though premium models like the 7GT and 9X should counteract this.

Long-Term Catalysts:
- Global expansion: Zeekr aims to double its 1.9 million global user base by 2026, leveraging its Scandinavian-Latin American Lynk & Co base and its premium Zeekr footprint in China.
- EV adoption tailwinds: The SPA Evo platform and Thor-powered autonomy position Zeekr to dominate the $700 billion global premium NEV market by 2030.

Conclusion: A Rare Growth Stock with Margin Resilience

Zeekr’s Q1 results are more than just numbers—they’re proof of a strategic juggernaut in motion. With margin discipline, a world-class product pipeline, and cross-brand synergies, it’s outpacing peers in profitability while targeting high-margin segments. The risks are real but transient; the rewards are structural.

For investors, this is a “buy the dip” opportunity. Zeekr’s 60% YoY net loss reduction and its $2.6 billion Q1 revenue (despite seasonal declines) signal that profitability is within reach. With the Zeekr 9X and Lynk & Co 900 set to drive Q3 growth, now is the time to position for a premium NEV leader primed to dominate the next decade.

The upward trajectory is clear—act before the market catches on.

Investment Thesis: Buy Zeekr Group for its margin resilience, premium product momentum, and cross-brand scalability. The risks are manageable, and the upside is asymmetric.